Can changes in price affect changes in demand?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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No, changes in price cannot bring about changes in demand.  Changes in price can bring about changes in the quantity demanded.  Changes in demand can bring about changes in price.  But changes in price cannot bring about changes in demand.

Demand for a particular item can be defined as the amount of that item that consumers are willing and able to buy at a given price.  Demand, therefore, is shown as a curve because people will buy different amounts of the item at different prices.  What this means is that changing the price alone does not change demand.  It just changes the quantity demanded.  In order for demand to change, something has to happen that will change the amount that consumers will buy even if the price remains the same.  When depicted graphically, a change in demand is the movement of the whole demand curve, not a movement along the demand curve that is already given.

Thus, changes in price cannot bring about changes in demand.  A change in price can only cause a change in the quantity demanded.

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